The Karnataka Cabinet has cleared the New Industrial Policy 2020-25 which aims at holistic development of the state. The policy focuses on treating all energy projects, including renewable energy projects, as industry and makes them eligible for all incentives, Filed Under: Industry Tagged With: government policies. Karnataka’s new industrial policy incentivizes high-tech investments, boosts local jobs creation, and seeks to move industrial and technology hubs beyond the  state capital, Bengaluru (formerly, Bangalore). Other incentives include – exemption from stamp duty and concessional registration charges; reimbursement of land conversion fee; tax exemption on electricity tariff for MSMEs; and power subsidy for MSMEs. Micro and small enterprises will be offered interest subsidies if they secure loans from public service banks at an annual rate of three percent for five years. The first SIR will encompass the Dharwad, Belagavi, Gadag and Haveri districts. Several areas are under considered for Special Investment Regions, like Dharwad, Gadag, Haveri and Belgaum Districts, Bagalkote, Bijapur, Bellary, Hassan, Koppal, Mysore, Mangalore and Raichur. Local jobs creation: The policy will require new industrial projects to create as much direct employment as possible and hire locally – a minimum of 70 percent of the workforce should consist of locals and 100 percent in the case of Group D type of employees (housekeeping and sanitation staff, non-technical posts, drivers, etc.). Rajasthan Rajasthan Industrial Development Policy Karnataka clears its New Industrial Policy 2020-25. It also set up India’s first notified engineering and manufacturing SEZ in 2009. A number of reforms have been introduced under the policy. non-technical staff, drivers, housekeeping staff, etc. The priority is once again given to enterprises in Zones-1, 2, and 3. The government proposes to make Single Window Clearance Mechanism simplified and more effective for conducting business in the state. The state’s approach of ushering in an environment of industrialization reflects its objective of improving per capita income, promoting higher capital formation and creating large employment opportunities. Let us take a look at the salient features of Karnataka Industrial Policy for 2014-2019. At least 70% of the workforce should ideally comprise of locals. The policy focuses on export promotion, renewable energy projects and is focused on providing support to enterprises that adopt energy efficiency measures. For more information and advice on choosing the right location for your business in India, please email us at india@dezshira.com. But opting out of some of these cookies may affect your browsing experience. Industrial policy and business regulation. The investment promotion subsidy will be based on 10 percent on turnover each year for a period of five years and limited to 20 to 30 percent of value of fixed assets (VFA). The industrially backward districts come under Zone-1 and Zone-2 while more industrially developed districts are classified under Zone-3 and Zone-4. Karnataka is a state in Southern India. Karnataka’s new industrial policy incentivises high-tech investments, boosts local jobs creation, and seeks to move industrial and technology hubs beyond the state capital, Bengaluru (formerly, Bangalore). The land conversion fee can be reimbursed up to 100 percent for enterprises in Zones-1 and 2 and 75 percent for those in Zone-3. The policy comes at a sensitive time for the south Indian state given the impact of COVID-19 and the need for a clear strategy to attract investment, create jobs, and incentivize industrial growth. The Industrial Employment (Standing Order) Act, 1946 has been amended to permit fixed term employment or contract employment. The Karnataka State Cabinet on 23 July 2020 approved the New Industrial Policy for 2020-2025 that aims to attract Rs five lakh crore worth investments over the next five years, and create about two million jobs to help mitigate the economic impact of the Covid-19 crisis. Annexure 2 Terms & Conditions for extending Incentives ... Annexure 4 List of Industrial Activities I Enterprises NO' Eligible for Incenlives and Concessions . US$66.89 billion). The state is home to the Pavagada Solar Park, which has an installed capacity of 2,000 MW, the largest in the country, of which 1,400 MW is operational. Sorry, your blog cannot share posts by email. Karnataka Chief Minister BS Yediyurappa’s office is currently reviewing the Draft Industrial Policy for the state for 2020-25. Filed Under: Industry Tagged With: government policies. These intra-state industrial corridors will be: Accelerate CBCIC: The policy also highlights the state government’s plan to accelerate work on Chennai-Bangalore-Chitradurga Industrial Corridor (CBCIC) and Bangalore-Mumbai Economic Corridor (BMEC) with the central government’s help. Andhra Pradesh unveils its new industrial policy. Incentives will be rolled out to direct greater investment to the industrially backward districts. What are the emerging opportunities and how should investors react? Development of industry, trade and service sector promotes higher capital formation, improves per capita income level and absorbs surplus work force. The new industrial policy of Karnataka is expected to push mobile production in value terms in the state to Rs 30,000 crore and create 1.2 lakh jobs by 2023, mobile handset and electronics body ICEA said on Sunday. Karnataka plans industrial park at Kolar Gold Fields, requests Centre to hand over part of gold mines land 29 Aug, 2020, 11.05 AM IST Chief minister BS Yediyurappa and industries minister Jagadish Shettar discussed the subject with Union Minister for Coal, Mines and Parliamentary Affairs Pralhad Joshi on Friday. Karnataka is well connected to all major markets with two international airports; 307,030 km of road network; and 5,543 km rail network. The Industrial Employment Act, 1946 has been amended to allow contract employment or fixed term employment. August 11, 2020 by Raggi Mudde. The company is now establishing India's first 400-acre toy manufacturing ecosystem in Koppal, which is expected to be operational in 2020. On July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. Annexwe 1 Definitions . The total installed power capacity in Karnataka stands at 28,400 MW. Subsidies for MSMEs: The policy offers production turnover-based subsidies for micro, small, and medium-sized enterprises (MSMEs) with a view to boost industrial innovation. Karnataka's new industrial policy incentivises high-tech investments, boosts local jobs creation, and seeks to move industrial and technology hubs beyond the state capital, Bengaluru (formerly, Bangalore). Karnataka has a new Industrial Policy. Promote Karnataka as a hub for entrepreneurs: The State Government wants to promote Karnataka as a hub for entrepreneurs. Late last week, on July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. businesses establish, maintain, How To Apply For Caste And Income Certificates In Karnataka? Overall, the new industrial policy seeks to attract investment worth INR 5 trillion (approx. Exports from the state stood at around US$17.4 billion in 2018-19, which is 5.3 percent of India’s total exports. Karnataka also hosts the highest number of R&D centers, technical and medical institutions, and startup enterprises in India. Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2014-19 with simplified procedures for investment. Industrial/Business/MSME Development Policies of State / UT Governments S. No. In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. For micro enterprises – investment promotion subsidies of up to 30 percent of VFA will be offered in Zone-1, 25 percent of VFA in Zone-2, and 15 percent VFA in Zone-3. Karnataka Industrial Policy 2020-2025 August 11, 2020 by Raggi Mudde Karnataka Industrial Policy for 2014-2019 aims to revive the state’s financial growth and improve employment. Meanwhile, Bengaluru has been ranked the fourth-best city for investment in India. The State Government on Thursday unveiled the new Industrial Policy 2020-25 aimed to ensure holistic development of the state. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. The policy waives 100 percent stamp duty for enterprises in Zones-1 and 2 and 75 percent of the stamp duty in Zone-3. Sector focus of the policy: Key focus sectors have been identified under the policy – automobiles and auto components, pharmaceuticals, medical devices, engineering and machine tools, knowledge-based industries, logistics, renewable energy, aerospace, defense, and electric vehicles. Karnataka Industrial Policy 2020-2025. This website uses cookies to improve your experience while you navigate through the website. Micro, Small, and Medium-Sized Enterprises (MSMEs) will be given production turnover-based subsidies to encourage innovation. The first such region or SIR will encompass the Dharwad, Gadag, Haveri, and Belagavi districts of Karnataka. Annexure 5 Zonal Classification . Karnataka To Align Property Guidance Value With Market Rates, BBMP Free COVID 19 Testing In Bangalore – Zonal Helpline Numbers, Facilitate investments in advanced R&D, manufacturing and innovation, Maintain an annual industrial growth rate of 10%, Attract investments of at least 5 lakh crore, Zone 1 and 2: industrially backward districts, Zone 3 and 4: industrially developed districts like Bengaluru and Mysuru, Exemption from stamp duty and concessional registration charges, Interest subsidy on loans for technology upgradation taken from public service banks, Subsidies for sustainable operations strategies. The key sectors identified by the policy include. Promote other areas: The government wants to decongest Bangalore and endorse other places as potential industrial locations. Aequs is Karnataka's first third-party IT SEZ outside Bengaluru. This category only includes cookies that ensures basic functionalities and security features of the website. It also aims to generate employment opportunities for 20 lakh people. In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. The southern state is India’s leading hub for technology companies, which are located predominantly in its capital Bengaluru. The new Karnataka Industrial Policy envisions emerging as a “global leader in advanced manufacturing, research and development, and innovation and to create an ecosystem for an inclusive, balanced and sustainable development of the State.”. The New Industrial Policy for 2020-25 will oversee new incentives and an easing of the regulatory process.”, In terms of the kind of investments the state sought to attract, Shettar said: “To emerge as globally competitive with skill and scale that leverage hi-tech growth, following thrust areas have been recognized: Industry 4.0, Research and Development, Intellectual Property Rights (IPR), Technology Adoption and Innovation, Cluster Development Initiatives and Sustainable Industrialization.”. Your email address will not be published. It says that the Department of Industries and Commerce along with the Department of Employment and Training would concentrate on issues related to quality training and certification. The second SIR will encompass the Davanagere, Shivamogga, Chitradurga, and Chickamagaluru districts as well as Kalaburagi. Industrial areas and estates through PPP model: There are plans for establishment of industrial areas and estates through PPP (Private, Public and/or Partnership) model or in association with other government agency. micro, small, and medium-sized enterprises, India Discusses Preferential Trade Agreement with Southern African Customs Union, How India’s Economy is Recovering from COVID-19: A Snapshot View, Dezan Shira & Associates' Service Brochure, An Introduction to Doing Business in India 2020, Due Diligence for Foreign Companies in India, Karnataka’s New Industrial Policy for 2020-25: What Should India-Bound Foreign Investors Expect. Read on to know the highlights of the policy. Special investment regions would have an area of about 100 sq.km and be categorized as industrial townships. Plan to make sufficient land readily available for business notified engineering and manufacturing SEZ 2009... ) in Northern Karnataka sorry, your blog can not share posts by email for. 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